XSLT failing with MalformedURLException: no protocol in JBoss EAP / SOA

Issue

• I have a rather complicated XSLT that only works with the saxon transformer (the open source version). I could not get it to work in XSLTaction, but I have it working fine in a standalone Java app. So I wrote a custom action and just copied what I had in the standalone class. Unfortunately, it fails with the error

  MalformedURLException: no protocol: ]]> 

What could be causing this problem in JBoss (developer studio) that isn't happening in a standalone Java app? Below is my example code:

TransformerFactory tfactory = new net.sf.saxon.TransformerFactoryImpl();
Transformer transformer = tfactory.newTransformer(new StreamSource("C:\\test.xslt"));
transformer.transform(new StreamSource("C:\\test.xml"), new StreamResult(System.out));